Despite continuing news that the economy is still struggling to recover, American consumers are expected to pony up for holiday purchases.
The National Retail Foundation (NRF) is forecasting holiday retail sales will increase by 2.3 percent this year to $447.1 billion. Last year the increase was only 0.4 percent, and in 2008, holiday spending dropped 3.9 percent.
“While consumers have shown they are once again willing to spend on what’s important to them, they will still be very conscientious about price,” NRF Chief Economist Jack Kleinhenz said in a release. “Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts.”
Consumers said they will spend an average of $688.87 on holiday-related shopping, up from $681.83 last year, according to NRF’s 2010 Holiday Consumer Intentions and Actions Survey conducted by BIGresearch. Of the 8,767 polled, 17 percent plan on shopping at a specialty store, and nearly 17 percent said they would like to receive sporting goods or leisure items as gifts. The poll has a 1 percent margin of error.
See more on holiday retail sales in an upcoming edition of Powersports Business.